Within business and economics commentary, the tale of Goldilocks (or, less succinctly, the optimal home comforts of its protagonist) is a well-worn metaphor. From capital investment to inflation, consumer sentiment and the economy itself, the shorthand is clear. Not too hot, not too cold; just right.
The imagery is powerful because ‘just right’ evinces not only favourable conditions, but predictability and, implicitly, control. It evokes a system working sustainably, without an analysis of how sustainable conditions really are. Depending on whether you’re a politician, central banker, or an investor, that either makes it a useful rhetorical device or a red flag.
But can the same description be applied to a stock? As the headline suggests, I’m going to give it a go, even if the dubious associations are hard to shake.